Sample Strategic Marketing Planning
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1. Introduction
This report will take the described strategic marketing processes in CQT (2011), and as a logic continuation of it, will apply marketing techniques to scan the environment in order to identify growth opportunities for XXX. Then, supported by tools such as Porter Competitive Matrix and Ansoffs Matrix, it will propose a strategic option and strategic marketing objectives. The report closes with a summary of the results.
4.1. Analysis of internal capabilities and SWOT analysis
Strengths
xxx is one of largest YYY IT contractors for consulting services. xxx, as signed by yyy in 2010 which allows to provide more than 100 consultants in the yyy in outsourcing. This contract ensures xxx a constant revenue source for the following years.
In addition, xxx has diversified activities in different sectors and not only concentrates on one industry: It holds contracts within the transportation vertical market.
Weaknesses
Despite xxx, has confirmed its presence the contract, the fact that it has lost the first position , can be viewed as a consequence and symptom of customer dissatisfaction. xxx definitely has to strengthen its customer relationships.
xxx financial performance record has weaknesses in margins, mainly due to occupying resources for software development which is an activity outside xxx core competencies. This focus on low margin consulting activities can be regarded as weakness.
Opportunities
Cloud must be considered an opportunity for xxx because it is in the domain of its competencies and in the scope of its strategic goals (see Appendix 1). Further expanding its capabilities in this area and differentiating itself from competitors can provide a competitive advantage.
Analytics and Business Intelligence is a growing market, but it doesnt fall in xxx core competencies. At the moment, xxx holds contracts to provide Business Intelligence services to HHH Insurance and could further invest in building up the competencies and using the already gained knowledge.
Threats
xxx faces stiff competition in market segments it serves. Besides having to compete with foreign, low-cost service providers in both technology and services segments, xxx competes with large organizations such as VVV, which have greater financial resources and a better brand image. Intense competition leads to pricing pressures, thereby decreasing the profitability of the company.
The results of the analysis are summarized in the following table:
Strengths
Weaknesses
Diversified activities in different sectors: government, transportation, banking
Contract discontinuity signify customer dissatisfaction
Opportunities
Threats
Analytics and Business Intelligence growing market
Intense competition
To complete the analysis and get better understanding of the specific industry aspects, the next step is to apply Porters Five forces analysis.
5. Strategic options
xxx has the possibility to follow one of 4 strategic option to face the high rivalry proven in the five forces analysis:
Competitive Scope
Broad Target
Cost Leadership
Differentiation